Indian Ferro Chrome producers raised their offers in line with rising prices in China and low inventory with Indian producers.
A rise in Ferro Chrome prices in China on the backdrop of higher raw material cost coupled with rising demand has lifted the spirits of the Indian producers.
“The Indian producers have raised their offers expecting a rise in Ferro Chrome tender prices by Chinese stainless steel mills for October,” said a source referring to the rising offers. They also have raised their offers in the domestic market, he added further.
On similar lines, another producer source commented that they are expecting major Chinese stainless steel mills to raise their tender prices and hence are holding on to their inventory.
Albeit rising Ferro Chrome price in China to RMB 6,800-7,000/MT (75 cents/lb – 77 cents/lb). Indian producers claimed to have not received any inquiries from the region amid exchange rate pressures. Moreover, China has sufficient domestic Ferro Chrome inventory as of now to cater to its buyers’ requirement.
However, demand from Japan and South Korea has been quite high as Japanese steel mills are producing to their full capacity.
Indian sellers are quoting 80 cents/lb CIF China and are hopeful to soon find acceptance, while deals are being concluded in Japan and Korea at 87 cents/lb and 86 cents/lb respectively.
Demand in the Indian market is observed to be constant as producers are sold out for September but are holding the stock for October shipment anticipating a rise in price with the added benefit of the depreciating Rupee.
SteelMint assessed Ferro Chrome offers at around INR 78,000/MT (ex-Odisha) while some are also offering at higher.
On the future outlook, market participants expect a surge in Ferro Chrome price anticipating the Chinese stainless steel mills to raise their purchase price for October.
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